Red Rock Resorts CEO Frank Fertitta III sells $40.3m in inventory

May 16, 2024 | blog

In a latest transfer that has caught the eye of buyers, Frank J. Fertitta III, CEO of Red Rock Resorts, Inc. (NASDAQ:), bought shares value roughly $40.3 million. The transaction, which happened on May 13, concerned the sale of 800,000 shares at a worth of $50.39 every.

This important sale comes amidst the backdrop of Red Rock Resorts’ ongoing operations within the gaming and hospitality business. As a number one participant within the sector, Red Rock Resorts owns and operates a number of leisure and gaming properties. The sale has resulted in Fertitta III’s direct possession being adjusted to 45,847,301 shares following the transaction.

It’s vital to notice that the shares bought by Fertitta III have been disposed of by FJF, LLC and bought by The Frank J. Fertitta, III 2006 Irrevocable Trust, which is established for the advantage of his youngsters, with Lorenzo J. Fertitta as trustee. According to the footnotes within the SEC submitting, this sale was made for property planning functions.

Frank J. Fertitta III shouldn’t be solely the CEO but in addition a major shareholder of the corporate, with an possession stake that exceeds 10% of Class A Common Stock, assuming all items of membership curiosity in Station Holdco LLC are exchanged for the issuer’s Class A Common Stock. The complicated possession construction includes numerous trusts and administration entities, as detailed within the footnotes of the SEC submitting.

Investors typically preserve an in depth eye on insider transactions as they will present insights into executives’ views on the corporate’s present valuation and future prospects. While the explanations for such transactions can range, they’re all the time a focal point for market contributors seeking to perceive the internal workings of the businesses they put money into.

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The market will proceed to watch the actions of Red Rock Resorts and its executives for any indicators which may point out the corporate’s path and efficiency.

InvestingPro Insights

Following the information of CEO Frank J. Fertitta III’s latest share sale in Red Rock Resorts, Inc. (NASDAQ:RRR), buyers could also be looking for extra insights into the corporate’s monetary well being and market efficiency. According to InvestingPro knowledge, Red Rock Resorts at the moment boasts a market capitalization of $5.47 billion, reflecting its important presence within the gaming and hospitality business.

InvestingPro Tips spotlight that the corporate operates with a notable debt burden, which is a vital issue for buyers to think about when assessing the corporate’s monetary leverage and danger profile. However, this concern is considerably mitigated by Red Rock Resorts’ spectacular gross revenue margins, which stand at 63.2% over the past twelve months as of Q1 2024. This margin showcases the corporate’s means to manage prices and generate income effectively.

The firm’s Price / Book ratio, as of the final twelve months main as much as Q1 2024, is 39.03, indicating a premium valuation that buyers are prepared to pay for its web belongings. This could possibly be attributed to the corporate’s sturdy market place and progress prospects. Moreover, Red Rock Resorts has maintained a constant dividend cost over the previous 9 years, with a present dividend yield of three.84%, an element that would attraction to income-focused buyers.

For these seeking to delve deeper into Red Rock Resorts’ financials and efficiency metrics, InvestingPro gives extra suggestions and insights. To enrich your funding evaluation, think about using the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. With this useful resource, buyers can entry a complete vary of information factors and professional opinions that may assist inform their funding selections.

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It’s additionally value noting that analysts predict the corporate will probably be worthwhile this 12 months, offering a constructive outlook for potential buyers. For these fascinated about exploring extra about Red Rock Resorts, go to for additional InvestingPro Tips—there are 10 extra suggestions obtainable that would supply priceless views on the corporate’s future trajectory and inventory efficiency.

This article was generated with the assist of AI and reviewed by an editor. For extra info see our T&C.

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